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Last edited 30 Sep 2021
Dynamic purchasing system under the Single Procurement Document (Scotland)
The Single Procurement Document (Scotland) - also referred to as SPD (Scotland) - is a document that contains questions used at the selection stage for post-Brexit procurement exercises in Scotland. It is used to identify suitably qualified and experienced bidders for public sector procurement in Scotland.
The Supplier Journey portion of the Scottish Government’s procurement guidance website offers an overview of the different types of procurement processes that are available under SPD (Scotland). One such type of process is the dynamic purchasing system (DPS).
As defined by the STAR Procurement Glossary of Terms, a dynamic purchasing system (DPS) is: ‘An electronic system procured using the restricted procedure for the purchase of commonly used supplies, services or works which are generally available on the market. All bidders who meet the requirements of the selection criteria must be admitted during the entire period of the DPS. It allows entry into the supply market for new suppliers throughout the life of the opportunity, rather than restricting them for a fixed period.’
The restricted procedure under the SPD (Scotland): '...is used where there are likely to be many suppliers interested in the opportunity. This is because procurement officers using the restricted procedure can limit the number of bidders to invite to tender to those with the best capacity and capability to meet the contract requirements, meaning bidders not meeting this criteria do not waste time and resources completing a full tender response.’
 Characteristics of DPS arrangements
The DPS must be run as a completely electronic process and the initial contract notice must specify the nature of the requirements and the approximate quantities or values envisaged. A contract notice is how a public sector procurement officer formally tells all potential suppliers about a public sector contract opportunity.
Contract notices must be published on Public Contracts Scotland (PCS), which provides free access to contract opportunities from Scottish local authorities, NHS Scotland, the Scottish Government, agencies and non-departmental public bodies (NDPBs), higher and further education and emergency services.
Since the contract notice remains open throughout the lifetime of the DPS, new suppliers can join at any time. However, any changes to the period of validity should comply with the principles of procurement explained in The Public Contracts (Scotland) Regulations 2015.
DPS arrangements are best suited or targeted in areas of spending where certain elements come together, in particular a large volume of suppliers (with no recognised single or natural marketplace or connection between those suppliers) combined with a large volume of transactions. If the services required are to benefit from multiple suppliers, then ‘large’ would be expected to be in excess of 20 suppliers.
The DPS is a two-stage process; the initial setup stage comes first, followed by the award stage. During the setup stage, all suppliers who meet the selection criteria (and are not excluded) are admitted to the DPS. During the award stage, the public body invites all suppliers on the DPS (or the relevant category within the DPS) to bid for the specific contract.
 Related articles
- Contract notice.
- Dynamic purchasing system.
- Exclusion grounds under the SPD (Scotland).
- OJEU procurement procedures.
- Procurement route.
- Public procurement
- Single Procurement Document (Scotland).
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